Three former Credit Suisse CEOs accused of excessive risk-taking -court filing By Reuters

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<span>© Reuters. FILE PHOTO: Chief Executive Officer of Credit Suisse, Thomas Gottstein, speaks during the fourth annual Future Investment Initiative in Riyadh, Saudi Arabia, January 27, 2021. REUTERS/Ahmed Yosri/File Photo</span><br />
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<p>ZURICH (Reuters) – A group of Credit Suisse AT1 bondholders has filed a class action suit accusing former executives at the Swiss bank, including three past chief CEOs, of being responsible for the bank’s downfall.</p>
<p>A lawsuit filed in a New York court on Tuesday accused former bosses Thomas Gottstein, Tidjane Thiam and Brady Dougan, and several other executives of doing excessively risky trades to achieve high short-term returns and bonuses.</p>
<p>“Credit Suisse’s directors and senior executives, and the rotten culture they instilled and fostered, destroyed trust in the bank, which led to its collapse,” the lawsuit said.</p>
<p>The lawsuit also accused executives of “creating and perpetuating a culture at Credit Suisse that placed profits, excessive risk-taking, and self-dealing over sound risk management and compliance with the law.” </p>
<p>As a part of the collapsed bank’s takeover by its former rival UBS in March, Switzerland’s regulator decided to render around $18 billion of Credit Suisse’s Additional Tier 1 (AT1) debt worthless, which stunned markets and alerted litigators.</p>
<p>The deal upended a long-established practice of giving bondholders priority over shareholders in a debt recovery, triggering hundreds of lawsuits.</p>
<p>Last month, Switzerland’s Federal Administrative Court said it has received 230 claims against the country’s financial regulator FINMA after it wrote off the value of Credit Suisse’s AT1 bonds. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/three-former-credit-suisse-ceos-accused-of-excessive-risktaking-court-filing-3110709">Source link </a></p><p>The post <a href="https://forextraderhub.com/three-former-credit-suisse-ceos-accused-of-excessive-risk-taking-court-filing-by-reuters.html">Three former Credit Suisse CEOs accused of excessive risk-taking -court filing By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>